Lesson 3 of 3 · 2 minute read
Better options than check cashing
How to get a low-cost account, even if you've had trouble with banks before.
Check-cashing stores are quick, but they charge a fee every time, usually a percent of your check. If you cash a check every payday, that can add up to hundreds of dollars a year.
Bank On certified accounts
Bank On is a national program that certifies safe, low-cost accounts at banks and credit unions. To be certified, an account must:
- Have no Overdraft feeA fee your bank may charge when you spend more than what's in your account and the bank covers the difference.More in the glossary
- Need $25 or less to open
- Cost $5 a month or less (a little more only if you can avoid the fee)
You can search for one near you at joinbankon.org.
If you’ve had trouble with banks before
Some people get turned down for an account because of past problems, like an unpaid overdraft. You still have options:
- Second chance accounts. Many banks and credit unions offer accounts for people with past banking problems. Ask for one by name.
- Pay off old bank debts if you can. Ask the old bank for a letter showing it’s paid. That can make it easier to open a new account.
- Credit unions are often willing to work with you.
Once you have an account
Set up Direct depositWhen your paycheck goes straight into your bank or credit union account, with no paper check.More in the glossary with your employer. Your pay goes straight into your account, often faster than a paper check, and there’s nothing to cash.
Check-cashing stores charge a fee every time. If you cash a check every payday, that can cost hundreds of dollars a year.
A bank or credit union account can end those fees. Look for a Bank On certified account.
Bank On accounts have no Overdraft feeA fee your bank may charge when you spend more than what's in your account and the bank covers the difference.More in the glossary. They cost very little to open and very little each month.
Turned down by a bank before? Ask for a second chance account. Paying off an old bank debt can help, too.
Once you have an account, set up Direct depositWhen your paycheck goes straight into your bank or credit union account, with no paper check.More in the glossary. Your pay goes straight in, with nothing to cash.